The UK's biggest outdoor retailer, Blacks Leisure, has put itself up for sale in a last-ditch effort to save the loss-making business from collapse.

Blacks, which owns 98 Blacks outlets and 208 Millets stores, warned that any sale of the company or its brands, which also include Peter Storm and Eurohike, was unlikely to offer any value to shareholders as its £36m debt far exceeds its current stock market value of £1.4m.

The group, which made a £16m loss in the first half of the year, recently warned that its full-year performance would be worse than expected. It has been hit by low consumer confidence, squeezed household budgets and tough competition.

The directors had hoped to secure funding for a turnaround of the business, which would have included a revamp of its stores, but its shareholders, which include Newcastle United owner Mike Ashley's Sports Direct, have failed to put up the cash required.

"The directors do not believe that the group will be able to complete a fundraising which would provide for the equity requirements of the group on the basis of its current capital structure and indebtedness," Blacks Leisure said in a statement. "As a result, the directors now wish to invite offers to support further investment in the group."

The company plans to conduct the sale process through its adviser KPMG.

Blacks said it continued to be in talks with its lender, Bank of Scotland, which is supportive of the proposed sale.

The company came close to collapse in 2009 but survived after a rescue deal with creditors that saw it closing more than 100 stores.

Blacks shares, which have lost about half their value over the past month, fell a further 47% just after the market opened on Wednesday morning and were changing hands at just 1.75p at 8.15am.